Audioboom raises profit guidance as podcast market booms

London-listed podcast provider Audioboom has issued a trading update saying it expects its annual revenue and profits to beat market expectations amid a booming podcast market.

The UK-based company said it is likely to run in its first ever pre-tax profit, which is said may come in at $3m, versus a loss last year of $1.8m.

Podcast market

Revenue, spurred on by explosive growth in the global podcast market, could come in at $60.2m, which would be a 125% increase over the $26.8m achieved last year.

Audioboom said it had seen significant growth of ad tech related revenue during the fourth quarter of 2021.

This, it said, was driven by an increase in adoption of its proprietary inventory creation tool AdRip, and the launch in November 2021 of Showcase, our global advertising marketplace. 

There was also increased premium advertising inventory from new major content partnerships including Two Hot Takes and Murder Mysteries and Makeup.

It saw long-term renewal of key content partnerships in its Premium Network, including Casefile True Crime, Mile Higher, Strange & Unexplained, Lights Out and The Sesh.

In its trading update, Audioboom said there was significant pricing growth for premium inventory in 2022. Q1 2022 Average Unit Rate (AUR) for top 25 podcasts is 26% higher than Q4 2021.

Stuart Last, CEO of Audioboom, said: “2021 was a phenomenal year for Audioboom. In my second year leading the business we have delivered an incredible set of results, the culmination of our focus on content expansion and platform development.

“Achieving profitability on both an adjusted EBITDA and net basis is transformative, establishing a self-sustaining business funded for continued growth, and reshaping shareholder value.

“Our revenue growth has once again significantly outperformed the wider industry. We’ve gained strong market share, and now rank as the 4th largest podcast publisher in the US. 

“Alongside our ranking of 2nd in New Zealand and 3rd in Australia, we continue to develop a strong global position.

“I’m very excited about 2022. We have seen unprecedented demand and high pricing during this year’s “upfront” advertising sales process, during which we have already booked more than US$45 million of advertising for 2022, giving us a strong foundation for further growth. 

“Our newly created production team in the UK has a strong set of shows in development, and we will continue to invest into our ad tech platform following the successful launch of Showcase, our global advertising marketplace.

“I want to congratulate the entire Audioboom team and thank our shareholders who continue to support our ambitions to be a global leader in podcasting.”

Audioboom’s shares, which are listed on the Alternative Investment Market at the London Stock Exchange, were more than 6.3% higher at £15 a shares following the update on Monday morning.